EE 2183

ASSIGNMENT
ECONOMIC COMPARISION OF DIFFERENT POWER SYSTEMS

Instructed by

: Name Index No. Group : P.M.Abeyrathne : 110008R : G-01

Date of per : 05/09/2013 Date of sub : 24/09/2013

Q1. a) 0.3 = Therefore Annual Load = 30 MV Annual energy production in kWh = 30 MV 365 24 h = 262800000 kWh = 262.8 GWh

b).i) Total power needed from the power stations = = 125 MW Maximum out of hydro power station Capacity of steam power station = 40 MW = 125 40 MW = 85 MW Total annual cost of Energy Total cost for hydro station for 20 years =

= Fixed Cost + Semi Fixed Cost + Running Cost

= (5000 40 103) + (0.09 108 20) + (0.4 108 20) = Rs. 11.8 108 Total cost for steam station = = (2500 85 103)+ (0.18 (262.8 - 100) 106 20) = Rs. 7.986 108 Therefore total cost = Rs. 19.786 108 /= Cash flow in kWh energy = For 20 years 19.786 108 = 19.786 108 =

262.8 106

262.8 106

x 8.5156 262.8 106

X= X = Rs. 0.8841 pre kW

Cost per kWh = Rs. 0.8841

ii)

Total cost for steam station for 20 years = = 2500 125 103 + 0.18 262.8 106 20 = Rs. 12.586 108 Cash flow in kWh energy for 20 years =

262.8 106

12.586 108 = X = Rs. 0.5433 per kW

Cost per kWh = Rs. 0.5433 per kW iii) Total cost for hydro station = = 125 103 5000 + 0.09 262.8 106 20 + 0.4 262.8 106 20 = Rs. 32.004 108 Cash flow in kWh energy for 20 years = 32.004 108 =

262.8 106

X = Rs. 1.3814 per kW

Therefore overall cost per kWh = Rs. 1.3814 per kW

iv)

Total cost for Coal station = = 125 103 3000 + 0.12 262.8 106 20 + 0.4 262.8 106 20 = 31.081 108 Cash flow in kWh energy for 20 years = 31.081 108 =

262.8 106

X = Rs. 1.3416 per kW

Therefore overall cost per kWh = Rs. 1.3416 per kW

Q.2 i)

Energy requirement for the year = 150 5 365 200 W = 54750000 Wh = 54750 kWh Overall efficiency of the power plant = 80% Therefore required energy given by the hydro power station = 54750 = 68437.5 kWh Total cost for small hydro power plant = Rs. 1800 000 1800 000 = x 68437.5

1800 000 = x 4.8696 68437.5

X = Rs. 5.4011 per kWh

ii)

Energy requirement for the year = 150 50 12 kWh = 90000 kWh Total cost for constructing distribution lines = 10 6 105 + 2 4 105 + 1 5 105 Rs = Rs. 73 105 73 105 =

9 104

X= X = Rs. 16.5666 per kWh

DISCUSSION
Importance of calculating depreciation Almost all factories use fixed assets to achieve their product, so as in power stations as it consists with a complex mechanical design. Fixed assets are valuable to all types of power plants because these are the types of assets which a power plant will likely own for a period of years. These assets are the ones that are used to produce electricity over a desired time of years. Assets could be appreciate or depreciate that a power station possesses. Appreciation occurs when the value of the asset increases as time passes, such as real estate. In a power station appreciation will not commonly used to evaluate. Depreciation takes place when the value of an asset goes down due to time, wear and tear, or obsolescence. Such assets can include equipment and machinery ( turbines and other mechanical equipment). Assets need to be evaluated as to their market value yearly at the end of the year when making accounts. This is known as the method of depreciating the asset. Valuing assets and also for calculating the unit cost per kWh consider the depreciation is much important. At the end of the year the value of depreciation is deducted from the profit so a fair value can be calculated for the profit. This is more likely to set a side suitable amount of money annually so that by the lifespan of the plant is over , the collected amount equals the cost of replacement of the plant. There are some methods to calculate the depreciation and straight line method is very much in used. To calculate it, first deduct the scrap value from the initial value and then divide from the number of useable years. Then we can gain fair value for the deprecated value for one year. Importance of calculating interest rates It is common for any country both developed and developing, that the value of money is decreasing. This is known as inflation. In developing countries the inflation rate is higher. So if we invest money in somewhere an interest rate is required to calculate the value of the investment after number of years. The interest rate is the rate of interest an investor expects to receive after allowing for inflation. Present Value

For given n years

Importance of a high load factor and the problems that can be solved using that Load Factor =

Load factor is a measurement of the output of the power plant compared to the maximum output that could produce. The value of the load factor is always less than one. If the power factor is a near value to one that means the power usage is relatively constant. Low load factor shows that occasionally a high demand is set. So high load factor is better for a power station. There are some reasons for that. Most importantly the efficiency is very high when the power plant works at a high power factor. If considering about low load factor, it shows that occasionally a high demand is set. Therefore a higher load factor usually means more output and lower cost per unit. Which means an electricity generator can sell more electricity at a higher spark spread. Spark spread is very important to a power plant. It is the difference between the wholesale price of the electricity and the cost of fuel used to generate it. This factor is unique to a power station and the electricity generators more likely to keep this in a high rate. In this whole sale price is the market price, electricity generators sell to the distributors.